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Do you think Keynes's economic model would be useful today to get our economy back?
Otto’s Autos buys cars for resale from the manufacturer at the price of $10,000 per car. Assuming there are no other costs, draw Otto’s total, marginal, and average cost curves. Suppose Otto launches a new ad campaign that costs $100,000. On a separa..
Outline the three forms of the efficient market hypothesis.
Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:
The plant and animal diversity of wet tropical forest biomes is the highest of all biomes on Earth. Why is this so? What abiotic factors affect plant and animal
Suppose a monopoly provides both Cable TV and broadband access in a city. The fixed costs are $1 million per day. The number of households (measured in millions) demanding cable is D1(p1) = 2-p1 (where p1 is measured in $/day). The demand for broadba..
Explain how quantity of labour to be hired and wage rate would be determined if input market is perfectly competitive. output market may be either perfectly competitive or imperfectly competitive.
How can I find marginal rate of technical substitution?
A price taking firm has a production function given byf(K, L) = K.25L.25. The price of output is normalized to 1, and theprices of L and K are w and r. Find the profit maximizing amountof K and L and verify that the second-order conditions or suff..
In lecture we discussed why the production possibilities frontier (the boundary of the production possibilities set) is bowed 'outwards'.
The variable cost per swing set is $500. The selling peice of the swing set is $1,000. How many swing sets would have to be sold for the firm to break even?
There are 10 consumers in a market, each with identical quasilinear demand equal to u(x,y) = ln(x) + y. What is the total market demand? (i.e. what is the relationship between the price and the total market demand?). What is the elasticity of demand?
In your explanation please interpret the components of the change in consumer surplus, producer surplus and total welfare. In other words what do these parts represent?
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